Finance Minister Nirmala Sitharaman announced an outlay of ₹10,000 crore to strengthen India’s biopharmaceutical ecosystem under the BioPharma Strategy for Health Advancement through Knowledge, Technology and Innovation (Biopharma Shakti).
The capital is aimed at boosting domestic production of biologics and bio-similars, she said while presenting the Union Budget 2026-27 in the Lok Sabha on Sunday.
Announcing the proposal during her Budget speech, she said the government will set up three new specialised institutes focused on biopharma research and manufacturing. In addition, seven existing institutions will be upgraded with modern laboratories, pilot-scale production facilities, and enhanced testing infrastructure aligned with global regulatory standards.
The initiative is aimed at reducing India’s dependence on imported biologics, lowering healthcare costs, and positioning the country as a global supplier of affordable bio-similars.
The upgraded and new institutes are expected to work closely with industry, startups, and academia, hence, creating shared platforms for innovation and skills development. The government also aims to address persistent talent and infrastructure gaps that have limited India’s ability to scale biologics manufacturing despite its strength in small-molecule generics, the FM said.
1 January 2026
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Sitharaman said the long-term funding commitment under Biopharma Shakti is designed to address these bottlenecks and provide sustained support rather than short-term incentives.
